Contributor systems and controls

The following requirements shall apply to contributors to interest rate benchmarks, in addition to the requirements set out in Article 16. Article 16(5) shall not apply. Each contributor's submitter and the direct managers of that submitter shall acknowledge in writing that they have read the code of conduct and that they will comply with it. A contributor's systems and controls shall include: an outline of responsibilities within each firm, including internal reporting lines and accountability, including the location of submitters and managers and the names of relevant individuals and alternates; internal procedures for sign-off of contributions of input data; disciplinary procedures in respect of attempts to manipulate, or any failure to report, actual or attempted manipulation by parties external to the contribution process; effective conflicts of interest management procedures and communication controls, both within contributors and between contributors and other third parties, to avoid any inappropriate external influence over those responsible for submitting rates. Submitters shall work in locations physically separated from interest rate derivatives traders; effective procedures to prevent or control the exchange of information between persons engaged in activities involving a risk of conflict of interest where the exchange of that information may affect the benchmark data contributed; rules to avoid collusion among contributors, and between contributors and the benchmark administrators; measures to prevent, or limit, any person from exercising inappropriate influence over the way in which persons involved in the provision of input data carries out those activities; the removal of any direct link between the remuneration of employees involved in the provision of input data and the remuneration of, or revenues generated by, persons engaged in another activity, where a conflict of interest may arise in relation to those activities; controls to identify any reverse transaction subsequent to the provision of input data. A contributor to an interest rate benchmark shall keep detailed records of: all relevant aspects of contributions of input data; the process governing input data determination and the sign-off of input data; the names of submitters and their responsibilities; any communications between the submitters and other persons, including internal and external traders and brokers, in relation to the determination or contribution of input data; any interaction of submitters with the administrator or any calculation agent; any queries regarding the input data and their outcome of those queries; sensitivity reports for interest rate swap trading books and any other derivative trading book with a significant exposure to interest rate fixings in respect of input data. Records shall be kept on a medium that allows the storage of information to be accessible for future reference with a documented audit trail. The compliance function of the contributor to an interest rate benchmark shall report any findings, including reverse transactions, to management on a regular basis. Input data and procedures shall be subject to regular internal reviews. An external audit of the input data of a contributor to an interest rate benchmark, compliance with the code of conduct and the provisions of this Regulation shall be carried out for the first time six months after the introduction of the code of conduct, and subsequently every two years.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-12 · Text as adopted (Official Journal); later amendments are not incorporated in this text.